# License Types & Classifications
A contractor "license" isn't one thing — states issue different **types** and **classifications** that define **what work you're allowed to do** and **how big**.
## Common license types
- **General building / general contractor** — vertical building work; sometimes split into **commercial** vs. **residential**.
- **General engineering** — heavy/civil (roads, utilities, sitework).
- **Specialty / trade** — electrical, plumbing, mechanical/HVAC, roofing, etc.
- **Residential builder / home improvement** — homes and remodels.
## Classifications & limits
States define **scope** (what trades you can self-perform) and sometimes **monetary limits** (e.g., you can't bid jobs over a certain value at a given license level). Pick the classification that matches the work you actually intend to do.
## Why it matters
Doing work **outside your classification** — or unlicensed — can void contracts, block payment, and trigger penalties. Match your license to your business plan.
**Takeaway:** Match your license type and classification to the work you actually plan to do.
> *Educational content — not legal, accounting, or licensing advice. Rules vary by state and change; verify with the licensing board and a CPA.*
